Economic Impacts
Baxter's direct and indirect economic impacts on its stakeholders are an important aspect of the company's sustainability performance. Direct impacts can be described by financial transactions, such as revenue received from customers, wages and benefits provided to employees or tax payments made to governments. Some but not all of these appear in a company's financial statements. Indirect impacts, which are more difficult to quantify, include productivity gained and money saved through customer use of Baxter's products and job creation outside of Baxter due to the company's spending.
Baxter's Financial Performance
Baxter's broader economic impacts depend on its ongoing strong financial performance. During 2006, the company increased its revenue, net earnings and margins. Cash flow from operations totaled over $2.2 billion, an increase of $600 million compared to 2005. Debt decreased by more than $500 million, while the company introduced numerous products worldwide and raised its investments in research and development and sales and marketing. Baxter's shareholder return, including stock price and cash dividends declared, increased 24.8 percent during the year, compared to 7.5 percent for the S&P 500 Health Care Index.
For a detailed description of the company's financial performance, see Baxter's 2006 Annual Report.
